SSO Contract Types & Administration 3

Question 1

Under the Hague-Visby Rules, what is the carrier's primary obligation regarding the vessel before and at the beginning of a voyage?

Accepted Answer

To exercise due diligence to make the ship seaworthy

Answer

Under the Hague-Visby Rules, the carrier must exercise due diligence to make the ship seaworthy before and at the commencement of the voyage.

Question 2

What does 'FIOST' stand for in charter party freight terms?

Accepted Answer

Free In and Out, Stowed and Trimmed

Answer

FIOST means the freight rate includes no loading, discharging, stowage, or trimming costs—those expenses fall on the charterer.

Question 3

In a contract of affreightment (COA), what is the primary feature that distinguishes it from a single voyage charter?

Accepted Answer

It covers a series of voyages over a period of time

Answer

A COA obliges the shipowner to carry a specified total quantity of cargo over multiple voyages during a defined period, without nominating a specific vessel upfront.

Question 4

Which international convention governs liability for oil pollution damage caused by ships and requires shipowners to maintain insurance?

Accepted Answer

CLC 1992 (Civil Liability Convention)

Answer

The 1992 Civil Liability Convention (CLC) establishes strict liability for oil pollution damage and requires shipowners to carry compulsory insurance (P&I cover).

Question 5

What is the significance of the 'cesser clause' in a voyage charter party?

Accepted Answer

It releases the charterer from liability once cargo is loaded and freight is paid

Answer

The cesser clause extinguishes the charterer's personal liability once the cargo is shipped, provided freight and demurrage are secured by the shipowner's lien on cargo.

(SSO) Ship Security Officer Practice Test

(SSO) Ship Security Officer Practice Test

SSO Contract Types & Administration 3